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Financial resilience in Lambeth – an ethnographic study

April 2013

Lead Researchers: Sherilyn Dos Santos and Dr Sharleene Bibbings

Research Team: David Minahan, Liz Gardiner, Rohini Anand-Pal, Salome Simoes,

Sumathi Pathmanaban

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Contents Page

1. Introduction 3

1.1 The focus of the research and the methodology 3

1.2 Constructing a sample 4

1.3 Fieldwork 4

1.4 Analysis 4

2. Literature review - what others have found 5

2.1 The challenge of understanding financial resilience 5

2.2 Understanding the day to day realities 5

2.3 Home is where the heart is 7

2.4 People need people 7

2.5 Prioritising children 8

2.6 Is work an option? 8

2.7 Recommendations for practice 9

3. The framework 10

4. Case studies 12

4.1 Richard 12

4.2 Pauline 14

4.3 Liz 16

4.4 John 18

4.5 Jane 20

4.6 Romeo 22

4.7 Sarah 25

4.8 Basil 28

5. Research findings and Analysis 31

5.1 Qualifications, skills and employment 31

5.2 Affordable Childcare 31

5.3 Money management and financial advice 32

5.4 Coping Strategies 33

5.5 Resilience factors 35

5.6 Daring to dream 36

5.7 In search of social capital 37

5.8 Making work pay 38

5.9 Stress, mental health and wellbeing 38

5.10 Building trust 39

6. Bibliography 40

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1. Introduction

The purpose of this study is to identify the key issues Lambeth residents face in achieving

and maintaining financial stability. It is envisaged that the findings of the study will help

inform plans for residents, the council and partners to work together to help Lambeth’s

residents achieve and maintain financial stability and improve their financial capability. It also

seeks to investigate the challenges faced by low income workers in trying to balance the

needs of their families against competing financial priorities and which types of support they

access in the process. For the purpose of this study a low income worker is a Lambeth

resident who works full-time or part-time and is also in receipt of housing and or council tax

benefit (one of the participants was an exception as he recently became unemployed.).

The decision to study the lives and daily financial challenges of low income families in

Lambeth was influenced by a number of factors including, the series of key welfare reforms

introduced from April 2013 which are expectedto have a huge impact on Lambeth residents.

As a council we are looking at what can be done to support those affected and deploy

available resources in a targeted way to create the most effective mitigation of the impacts of

some of the Government’s changes, but the resources available for mitigation are limited

when compared to the losses in income that residents are facing in Lambeth.Improving

financial resilience is a key priority for the council as it will ensure that local people are more

able to access the financial services, products and advice that will allow them to achieve and

maintain financial stability, avoid debt and generally improve their financial capability.

1.1 The focus of the research and the methodology

In assessing the impact of these reforms, the research sought to answer two fundamental

questions:

1. What are the key issues low income workers in Lambeth face in achieving and

maintaining financial stability?

2. How can citizens, the council and partners work together to help Lambeth’s citizens

to achieve and maintain financial stability and improve their financial capability?

To answer these questions an ethnographic study was undertaken. There was a variety of

research methods that could have been used to answer the above questions, such as focus

groups or in-depth interviews, however each fell somewhat short in being able to give the

level of detail and insights necessary for the project aims to be fulfilled. Ethnography, on the

other hand, can reveal the detail in people’s lives as ethnographers have more time with

respondents to get behind initial opinions and explore people’s histories and stories. It is

increasingly seen as a way of generating innovative pathways to deeper levels of

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understating of our most vulnerable communitiesi as it uncovers the voices that do not

necessarily get heard during formal consultations (Hunt, 2001). Researchers have time to

build trust and talk about obscured issues like the informal economy (Lambeth, 2011). They

can even observe (first hand) the difficult financial choices people have to make. This

approach also provides a more nuanced understanding of people’s motivations and

intentions, which should allow for the development of a menu of interventions that can be

tailored to meet their needs.

1.2 Constructing a sample

A sample of people with low incomes, living in Lambeth, was drawn up. This encompassed a

range of different kinds of people who were likely to be accessing different kinds of services

and have a range of different needs. The sample was taken from a council list of residents

who were in debt to the council. The sample was stratified according to a number of different

criteria. These criteria related to the employment status of the individual and the types of

benefit they were in receipt of. The sample included 8 households. All respondents, bar one,

were employed, in receipt of housing and/or council tax benefit, and were council tenants. All

but one of the respondents could be described as low income workers.

1.3 Fieldwork

Researchers spent a full day or half a day with respondents in their homes, workplaces or

out and about. Each researcher used a topic guide to ensure that core research questions

were covered (mainly focussing on the use and prioritisation of income, financial challenges

faced and services/interventions that would help improve their financial situation). Beyond

this, researchers allowed the respondents themselves to structure conversations and to

describe and demonstrate their daily routines and needs in their own way. In many cases,

researchers were able to observe respondents first-hand, making financial decisions about

purchases in local shops or online.

1.4 Analysis

Post-fieldwork, all of the researchers convened in two analysis workshops to share data and

explore the themes that emerged from the research.Themes were structured according to an

analysis framework designed specifically to explore the relationships between respondents’

needs and issues and their use of coping strategies and levels of useful social capital. The

framework pushed researchers to structure data into the following process of

analysis:needs, strategies, resilience factors and barriers. These will be explained in more

detail later in this report.

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2. Literature review - what others have found

As part of this study we conducted a literature review of the existing ethnographic research

on financial resilience.iiDespite the small number of studies there are lessons to be learned

to help us put our findings in context. As much as possible we have let the voices of the

research participants speak for themselves.

2.1 The challenge of understanding financial resilience

Financial resilience is a highly complex issue to unpack from a research and a policy

perspective. There are contradictions in the research around the factors which cause poor

financial resilience, and those that are associated with it (Joseph Rowntree Foundation,

2012; 2012; Hunt, 2001). Added to this, stereotypes dominate the debate in the media,

public opinion and even policy debates. We often hear language that refers to people as

‘lazy’, ‘scroungers’ and ‘troubled’. As will be discussed later, shame is a feature of the day to

day lives of people in receipt of benefits. There is also debate over types of policy

intervention and the legitimate role for the state in addressing aspects of financial resilience.

For example, should the state support parenting skills, be punitive, focus on those in crisis or

put in place incentives to encourage people into work? (Kent County Council, 2008)

2.2 Understanding the day to day realities

Looking across the ethnography literature identified for this review offered a way out of the

intellectual cul-de-sacs described above as it allowed us to better think through the actual

realities of the day to day lives of people in receipt of benefits. The literature highlighted

seven recurring stories which are outlined below:

• Not enough money coming in

• Micro money management

• Poor housing

• Relationships and children

• Eroding resilience

• Complex needs

• Stereotypes, shame and aspirations

Overwhelmingly, the key theme in the literature is that individuals and families don’t have

enough money to meet their basic needs such as rent, food and bills. This is captured by

one participant in the research by Kent County Council:

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I am on a downward slope, but there is nothing I can do. I have to feed the kids.

Eventually I will end up in court… but what can I do? I can’t pay the money so

what’s the point in them asking me for it? (Kent, 2008:40)

Another participant in the Joseph Rowntree Foundation research captures the emotional toll,

‘I’ve got no life being on the dole … it’s a miserable existence. I wouldn’t wish it on

anyone.’ (page 26). Surrey County Council are anticipating some of the likely effects of

welfare reform particularly in terms of mental health, stress and anxiety (Surrey, 2013). The

finding around the mental burden of poverty is also reflected in the findings of other work

carried out by Lambeth (Lambeth, 2011).

Tight control and meticulous money management was a central theme in the literature. The

Kent County Council study called this the ‘milky bar strategy’, where every penny is

accounted for. Choices were made at the micro level about spending on something that cost

as little as milky bar chocolate. Every penny is significant. There was an array of coping

strategies that included cutting corners such as going without food (Kent County Council,

2008), bill juggling, using the ‘Peter to pay Paul’ approach, as well as setting up and using

meters to avoid large utility bills. Other approaches drew on participants’ social capital, for

example, talking at the school gates to better understand the benefits system (Kent County

Council, 2008). In fact a high level of resilience and skills were demonstrated among the

participants in the various ethnographic studies, which enabled individuals and families to

manage not having enough money to meet their necessities. As Graham Badman Managing

Director of Children, Families, Health and Education said in his foreword to the Kent

research:

‘[findings] also demonstrates the levels of resourcefulness and

ingenuity that parents develop in order to provide for their families. It

frequently challenges the commonly held assumption that these

families lack financial acumen and shows that this is far from the

truth’ (Kent County Council 2008: 9).

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2.3 Home is where the heart is

The families in the literature often lived in material deprivation, and housing was unsuitable

for their needs, or cramped and damp. Homes frequently felt unsafe and local amenities

were lacking. Accessing supermarkets meant travelling long distances with young children

and parents had to rely on more expensive corner shops. One participant said; ‘’the only

shops round here are banks, betting shops and charity shops.” (Kent, 2008:51). This

reflects the recent Labour party campaign to ‘save our high streets’ and protect local shops

and amenities.iii Set against this, the stories also set out the pervasive feeling that families

had little control over the choice of where to live and were placed where ‘agencies’ put

them.

2.4 People need people

Healthy and stable relationships provided cash support and non cash support (such as

babysitting). They were also a source of positive social capital, for example, by providing

young people with role models. Relationship break down was often a reason for diminished

financial resources, but it also cut people off from broader social networks and support from

in-laws and grandparents. The experience of becoming a single parent often triggered or

heightened financial hardship. Relationships could also be dangerous and violent. This in

turn, could lead to isolation, although this was not everyone’s story.

Connections and interactions with agencies could be a vital asset in terms of providing

benefits and housing, particularly in times of crisis. Churches and Sure Start centres were

also seen as playing an important ‘oasis’ role, and provided opportunities for socialising and

developing confidence and skills. They also provided practical help, for example by referring

people to Home Start (Kent County Council, 2008). However, the state is also seen as a

cause of financial hardship, particularly through the poor administration of benefits which

caused huge anxiety. A particularly acute example of poor benefits administration is included

in the JRF report:

‘For instance, the husband of Alice Hopkins (53, Middlesbrough) had

been declared ‘fit for work’ despite his long-standing and terminal

illness. The family appealed against the decision: ‘… it went through

in February and it was denied and he was dead. It was denied and he

was already dead!’’(Joseph Rowntree Foundation, 2012, 26).

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2.5 Prioritising children

Throughout the broader ethnographic research, it is clear that families put the needs of

children first when prioritising their resources. Parents would always go without to ensure

their children were adequately fed and clothed. This reflects recent findings by Save the

Children (2012) which showed that as well as maintaining high standards for the material

care of their children, parents also had high aspirations for their children’s future, and wanted

them to do better than them even though parents may be out of work. In fact the conclusion

of the Joseph Rowntree Foundation in their ethnographic study was:

‘Without exception, parents also hoped for better for their children and,

where possible, made practical efforts to help them towards employment’.

(Joseph Rowntree Foundation, 2012, 26), 2012,47)

Despite parents’ efforts, it is recognised in the literature that children often bore the greatest

cost of poverty. Surrey’s report makes the important point that there are limits to resilience,

which policy makers should be mindful of. This is echoed by other research, see for example

Harrison (2012).

2.6 Is work an option?

For some people, the challenges in their personal lives were almost overwhelming and

insurmountable. This often meant that although work would be a solution to their financial

problems, this was a highly unrealistic goal given their personal lives (Kent County Council,

2008). The Joseph Rowntree Foundation study outlined that education and exclusion,

substance misuse and crime, violence and poor mental health are key features of the lives of

people who had been out of the labour market for long periods of time, sometimes for

generations. That is, those furthest from the labour market had the greatest number of

challenges. This cohortof individuals and families, although small, were not actively looking

for work as they were overwhelmed by their problems.

For others taking work on had a number of risks, such as being without an income during the

transition from benefits to employment. There was also the risk of having benefits stopped

while being re-assessed because their circumstances had changed due to taking on more

work (Kent County Council, 2008). An example of the complexities is set out in the Surrey

report:

‘There are also wider points from the research about preparations for

entering work. One of the parents interviewed was clear that loss of

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CTB would mean that she would need to take on a weekend job which

in turn would mean ending her university course which is designed to

provide the qualifications necessary to pursue a future career’

(Surrey, 2013:337)

The literature also looked at the attitudes of public sector professionals that the research

families encountered. It suggests that the view that those claiming benefits are choosing to

do so, and that they are influenced by a culture of worklessness were common place.

Unsurprisingly, those out of work or claiming benefits often felt that their lives were often

misunderstood by agencies. The literature also reported that people felt a deep sense of

shame for receiving benefits and were aware that they were being viewed in a derogatory

light.

2.7 Recommendations for practice

The ethnographies we have reviewed also contained a series of recommendations for

commissioners and policy makers around how to support financially excluded people and

build greater resilience. A number of recommendations flowed from the research, which can

be grouped into four themes outlined below.

a) Tackle complex needs first. Joseph Rowntree Foundation report is clear on this; if you

want to help those who are most vulnerable and furthest from the labour market,

interventions should focus on resolving personal issues around health and substance

misuse, for example, first.

b) Dignity should be at the heart of interactions. As Hunt describes: ‘ What these women

appear to want more than anything is to be treated with respect and dignity;

(2001;225)The policy recommendations emerging from Kent’s research have

emphasised the importance of giving families control over their lives and encouraging

confidence and a sense of agency.

c) A more agile and preventative public sector. The state needs to change the way it

operates so it can act quickly, or even preventatively, to support families facing financial

hardship such as that likely to occur as a result of some of the welfare reforms. Indeed,

Surrey set out the expected sharp rise in demand (Surrey, 2013) and the need for local

government to become more agile.

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d) The need to create more jobs. The most important practical change needed to build

levels of financial resilience was the creation of more jobs. All of the financial

resilience studies reviewed here emphasised the importance of paid employment

as a means of escaping poverty and financial exclusion.

3. The framework

After analysing the findings from our own research we have developed an analysis

framework based on needs, strategies, resilience factors and barriers.

Figure 1. Diagram showing the analysis framework used

Needs: these are the key needs of the individual that, if met, would enable them to become

more financially resilient. For example, full time employment so they can work more hours,

earn more money and afford certain essentials such as carpet in their flat.

Strategies: these are the methods used by individuals to manage their financial situation.

For example paying the priority bills such as gas and electric and leaving non-priority ones

unpaid, i.e. the mobile phone bill. Other strategies include bulk buying food to make most of

special offers and stocking up on cheap yet filling foods such as pasta.

Resilience factors: these are the successful coping methods used by individuals to enable

them to cope with the struggles of life on a low income. Examples of this include individuals

providing support and informal advice to others experiencing financial problems, such as

friends and family members.

Barriers: these are the obstacles individuals face. For example, lack of full time work

available and the loss of benefits and support if full time work is taken up.

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When analysing the findings from the ethnography research, the research team developed a

framework for plotting where participants were in terms of financial capability and social

capital. This did not necessarily reflect people’s incomes, but rather what they were able to

do with it. Therefore each participant was categorised as being: passive, resourceful,

invisible or self reliant, as shown in figure 2.

Figure 2. Diagram showing each participant’s level of financial capability and social capital. Each red dot

represents a participant.

The next section will look at each of the case studies in detail highlighting the specific

challenges faced by the individuals in this study as well as the vast amounts of resilience,

and ingenuity they had when it came to providing for their families. Over half of the

participants were single parents, which further increased the pressure and daily challenges

faced. However, according to the data three quarters of participants were identified as being

resourceful as highlighted in figure 2. All participants have been given pseudonyms to

protect their real identities.

More

financially

capable

Less

financially

capable

High social capital

Low social capital

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4. Case studies

4.1 Richard

Richard is a 46 year old lone parent to 3 year old twin daughters. He lives in a two bedroom

council flat (converted house) in Brixton and is a part-time baker earning £300 per week. He

is of Jamaican heritage although he has never travelled abroad. Richard has had large credit

card debt in the past, and has since become debt adverse and no longer has a credit card.

He only uses a debit card as he is still paying off money owed to the council. He has lived in

his relatively spacious flat for 10 years, prior to that he lived in another council flat on an

estate. The property was uncarpeted throughout as Richard is unable to afford the cost

which he said would be about £1000. He has several siblings, which he describes as “all

poor and in need of financial help themselves, although some are in a better situation

than me”.

“I’m in a mess, it’s just hard; there’s no end to anything – I am literally struggling, if

something unexpectedly broke in the flat, I wouldn’t be able to deal with it. I’d be in

trouble”(Richard)

Richard is extremely house proud and spent

quite a bit of time cleaning whilst the

researchers were present. He takes his

children’s education really serious as he

wants them to do well in life, which is why he

sends them to a faith based pre-school,

which is a significant distance from their

home. He believes the school provides good

discipline.

Richard spends most of his weekly income on food and fuel. He doesn’t have any childcare

costs as his daughters receive the 15 hours Early Year Free Entitlement, and his family help

with childcare outside of this.He shops in large supermarkets to make the most of offers, and

buys a lot of pasta as he says it is filling for his girls. He said he sometimes went without

food as there wasn’t enough to go around. He uses prepaid gas and electric meters and

seems to spend a very large amount topping them up – sometimes up to £60 per week on

heating as the property is poorly insulated. He believes he is being overcharged.

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Needs: Richard’s main need appears to be full

time employment. He spoke of having his hours

reduced a couple of years ago when the business

downsized. His income is less than his outgoings

as he is currently paying off rent arrears and

council tax debts (he wasn’t sure how much he

owed). He would like to retrain if it helped him get

better paid work, but felt unable to as it would

have to be in the evenings when he needs to be

home with his daughters. There was also a basic

need for carpet in the property which would help

in making the property warmer and make it more

comfortable for his children.

Strategies: Bulk buying cheap, yet filling food was a way of ensuring he always had

something to feed his daughters. He relied on the help of family members to care for his

children to enable him to go to work part time. He has used an informal saving and lending

scheme called a partner system1 in the past to save for large purchases such as his

daughters’ pushchair. He no longer took part in one as he couldn’t afford it.

Resilience factors: Whilst Richard was coping with his financial situation, it was evident that

it had taken its toll on his emotional and mental wellbeing. He seemed to lack confidence

that he would be able to change his situation, and was quite passive and slightly reluctant to

take action “I would retrain but that would have to be in the evening and I don’t want to leave

my girls with anyone” (Richard). Richard seemed pretty resilient in that he had been living

with outstanding repairs in his property for a number of years, but despite this had made his

home comfortable as possible for his family.

Barriers: Lack of full time work in his profession, inadequate childcare for him to study in the

evenings and a lack of useful social connections.

According to the diagram in figure 2, Richard was classified as being invisible as whilst he

had the support of his family in helping out with his children, he was not involved with any

organisations or associations that could offer him support in other areas. His social

connections seemed to consist of people who were in similar circumstances to himself –

1 A popular form of savings system established in the Caribbean

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struggling financially. As mentioned earlier, he appeared to be reluctant to take steps

towards changing his financial situation.

4.2 Pauline

Pauline is 37 years old, married and has five children; three boys and two girls. They are

aged 3,4,6,7 and 13 years old. Pauline, who describes herself as ‘Black Caribbean’, has

been a Lambeth resident all her life and currently lives in a 5 bedroom housing association

flat. She has worked for Marks and Spencer two days a week for the past four years. Her

husband is a degree graduate but works in the

delivery office of Stockwell post office.

Pauline’s parents and siblings live near by in

West Norwood and her uncle, who also lives

nearby helps out with childcare two days a week.

He takes the children to school and nursery and

picks them up. Pauline does school and nursery

runs two days a week and her husband does it

one day a week. Whilst her extended family are

helpful in providing childcare, she said they are

not a financial resource she could use.

Pauline is in receipt of several benefits including

Working Tax Credit (WTC), Child Benefit (CB)

and Housing Benefit (HB). Pauline described her

family as being in debt, many of which she brought into the marriage through credit cards,

store cards and rent arrears. The family use a debt management company, Christians

Against Poverty (CAP), to help them manage their finances. They took this option as Pauline

felt she had to do something as “things weregetting on top of us; it was all getting too

much”(Pauline). Pauline pays CAP £775.02 per month to pay bills on her behalf and pay

down some of her debts. This leaves her with an agreed amount to cover expenses outside

of this with some left for emergencies.

As a result, the family are managing a lot better now and her husband is a lot less stressed

as he is the main income provider. They are aiming to be debt free within 5 years. “Life is

more manageable now, before it was just about paying bills - life is more positive

now”(Pauline).

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Pauline wishes she had been better with her money earlier in life, and had a better

understanding of money management. She thinks money management should be taught in

schools so that children can avoid the basic financial mistakes many people make. She

believes she picked up bad spending habits through her parents who taught her “if you see

something and want it, then buy it” (Pauline). No one advised her about the need to save

money to cope with unexpected spending.

Needs: The main need is for better paid

employment. Despite being a graduate, her

husband is doing a low skilled job, which is

relatively low paid. Pauline’s job is also low

paid. The family also need furniture as they

only had two small beds for their daughters

and the rest of the children slept on

mattresses on the floor as their previous bed

frames were damaged in their former property

and at present they were unable to afford new

ones. It was unclear where the adults slept.

Strategies: The use of a debt management

agency was a way of getting on top of their

finances and relieving mental stress and

pressure.

Resilience factors: Pauline spoke of having a strong Christian faith and trusting that God

would make a way for them out of their financial situation, which helped her to keep positive

and hopeful. Though Pauline claimed to not have many friends, she socialised with work

colleagues and at church every week. A strong family bond was also central to Pauline’s

story; she spoke of taking everything in her stride, as she stated “I’m just trying to provide

the best future for my children”. They didn’t own a television and spent quality time

together as a family every week where they would have a Sunday roast, play games and ask

for the children’s views and opinions on various matters.

Barriers: It was unclear what the barriers to better employment were for her husband.

Though he was a graduate it appeared that he took a job with the post office to meet their

immediate financial needs. It could be that for him to take up his chosen career he would first

need to develop experience in that field, starting at a low level or even by volunteering,

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which would impact on his ability to earn sufficient income. Pauline had considered working

more hours but was concerned that it might affect her benefits.

According to the diagram in figure 2, Pauline was classified as being resourceful as she

knew where to go to get support in managing her finances, spoke of positive social

connections at work and church and had a plan of how her family would become debt free;

she was keeping to the plan.

4.3 Liz

31 year old Liz is described as ‘white’ and works part time as a receptionist. She is a single

mother to her 14 year old son, who has Attention Deficit Hyperactivity Disorder (ADHD). She

is in touch with her son’s father and his family, but her wider family (mother and younger

sister by 10 years) live in Ipswich. Liz and her mother moved from Yorkshire to London when

she was 7 as her mother was looking for better job opportunities. All her extended family are

back in Yorkshire.

Liz lives in Kennington in a council flat in a large tower block, which has an attractive outdoor

area on the mezzanine. She is very happy in her flat and on the estate where she has lived

for 7 years, after being moved for protection purposes from another part of the borough as

she witnessed a serious crime.

Liz works three days a week, earning £7.10ph; she is also in receipt of HB, WTC and Child

Tax Credit (CTC). She spoke of being due for a pay rise which would probably be an extra

20p hour, which will add up to £1.50 a day. Though small she appeared to be genuinely

grateful for it “Still £1.50 is better than nothing” (Liz). Liz was shocked to hear about the

London Living Wage from the researcher and immediately sent a text to her friend to inform

her. Liz had considered working more hours but was concerned about the loss of benefits as

a result.

Liz has previously been in large rent arrears and is very concerned about that happening

again, and as a consequence losing her property. Though she still has rent arrears, she now

prioritises her current rent payments alongside food and electricity and paying back money

owed for her sofas., Interestingly she did not count the sofa payments as a debt as she’s

paying them off. She currently has a debt of over £8000 for council tax. Debt is a constant

worry but she tries not to think about it. She has been to court a few times and promises to

pay, but knows she can not afford to.

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Liz has set up direct debits for her main bills for the day after her wages are paid. She has a

credit card with a very high APR, and pays back the minimum balance every month (most of

the payment goes towards the interest). She uses the card mainly to buy things for herself,

for example clothing from online retailers. Her last order from clothing shop ASOS was £157.

Liz spends approximately £80 every 2-3 weeks on groceries from Tesco online. She prefers

branded products, such as Evian water, Dolmio, Flora etc, as she is fussy about ‘value’

products. Liz believes they eat too much takeaway, which they usually buy when they run

out of food.

Liz has no financial support networks – “my whole family is poor”(Liz).Her son’s father is

also in rent arrears and was previously evicted from social housing. He is now living in

private rented accommodation in Bedford, as this is the closest place to London with

affordable rent. Liz clearly has financial struggles and has previously relied on the Citizen’s

Advice Bureau (CAB) for advice about rent arrears and debts.

“I’d be screwed if there were an unexpected large expense e.g. having to get the

washing machine repaired” (Liz)

According to Liz, her son’s previous school

were unable to manage him, and he was

moved to a Pupil Referral Unit in another part

of the borough. It takesan hour for him to

travel to on the bus. Liz doesn’t like him being

there – “it’s like a zoo” (Liz), but they have

had little success in reintegrating him to a

mainstream school.

Needs: The evidence suggests Liz would

benefit from financial advice and support to

help with budgeting,managing her debts, and

assessing her benefits to see if she could

work more hours without losing income. She

clearly had worked out a way of prioritising

some payments, but she ignored other bills, which could have catastrophic consequences.

She needed access to skills development/training to prepare her for better paid employment

and access to ethical low interest lending.

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Strategies: Liz’s financial management strategy included paying the bills she deemed more

important than others due to the potential consequence of not paying i.e. non payment of

rent might have led to eviction. She seemed to disregard her council tax debt as she

believed it was un-payable and chose to overlook the potential consequences.

Resilience factors: Liz’s coping abilities were linked to her social networks and friendships

– she continually texted friends throughout the day. She also sought mental ‘pick me ups’ by

spending money and ‘treating’ herself with mainly online purchases using her credit card.

Barriers: Lack of correct information seemed to be an issue as Liz’s actions seemed to be

based on hear say rather than facts. Also loss of benefits and increased financial

responsibility were a barrier to her taking up full time employment.

According to the diagram in figure 2, Liz was classified as being passive, as whilst she had

social networks via her friends, they did not afford her any useful social capital. Liz was

information poor and did not know where to go for financial advice or support. She also

appeared to be passive in taking steps to change her financial situation.

4.4 John

46 year old John is described as “White” and has been a resident in Lambeth all his life, apart

from a short stint living in Bristol a few years ago. John lives in a Housing Association flat in

Knights Hill with his brother, who has been unemployed for approximately two years. He is

single with no children and has strong family connections to the area; he attended local schools

and his parents and grandparents are buried in West Norwood Cemetery.

John was in full time employment in administration and was worried he would lose his job as his

company was “not as busy as they used to be” (John). He was worried about unemployment

as he enjoys working. He had a very varied employment history. He had worked for Streatham

Job Centre and TBG Learning, finding vacancies for the long term unemployed. He also worked

in a sexual health clinic. John had been unemployed for short periods of time in the past,

however he knew people who worked at the Streatham Job Centre, so had always had a good

experience there and had found the staff helpful.

John’s biggest financial biggest worry was rising fuel costs. He thought the amount he spent on

electricity had quadrupled over the last couple of years. John was on a payment meter for his

fuel. Although he knew that this meant he paid more per unit, he preferred this approach as he

could control the amount he spent. John’s main concern with his home was insulation, he

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thought the properties on his estate were very energy inefficient and “the council needs to look

into insulating the properties and installing solar panels on the roof” (John).

John’s other biggest expenditure was his rent. He paid the housing association £633 a month

with a percentage going towardshis arrears. He went into arrears when his brother, who he

shares the flat with, lost his job.John was under the impression that his brother was still in

employment and paying half the rent, and didn’t realise he was in arrears until the housing

association contacted him. John prioritised his bills, first rent then council tax. He would then

split the remainder of his money into weekly amounts and budget accordingly. If he was

expecting to buy something large, or visit his sister in Bristol, he would try to save over the weeks

to pay for it. He allocated a certain amount of his income to energy costs; when this ran out he

went without heating or electricity. John recently received a letter from the council explaining that

his council tax benefit would be ending due to Government changes to the benefits system and

the transition to council tax support.

John was averse to borrowing money from anyone or anywhere, as he understood the potential

dangers of borrowing money from high interest lenders such as Wonga or pay day loan outlets.

John had a history of using credit cards and being in an unmanageable debt situation as a result.

He sought advice and was eventually able to clear his debts, although he seemed unaware that

there are free advice services in Lambeth available to him. John spoke of experiencing low level

depression linked to his financial uncertainty; it was when he realised that his mental health was

being affected that he sought advice. John described his financial situation as “chaotic” though

he had strategies in place to manage this.

At the time of the research John had a Provident loan, which he used to replace a broken laptop.

He thought Provident were a better loan provider as their interest rates were lower and they

appeared to be more flexible with repayments. John also had a credit card and a Debenhams

store card, which he took out for a specific purchase as there was a discount. When asked what

he would do if he needed to replace something urgently, his first response was “I would ask my

sister for a loan although I wouldn’t like doing it”. He is very close to his sister, her daughters

and grand daughters. He lived near them in Bristol a few years ago but moved back to London

when he lost his job as a benefits assessor. If he could choose he would live in Bristol again as

he preferred the local area and being near family. Although he lives with his brother, their

relationship is difficult as he thinks his brother has taken advantage of him. John has one other

brother but they fell out with each other a long time ago and had not seen each other since.

Needs: Whilst John was keeping on top of his finances, it seems as though he could benefit from

advice in regards to low interest borrowing. He also needed help in making his home more fuel

20

efficient. Fuel costs had risen rapidly in recent years, and at times he was not able to pay for

enough fuel to keep his home warm and comfortable. As his brother was unemployed, John also

had to cope with paying most of the rent/household costs.

Strategies: John carefully prioritised his bills and allocated fixed amounts for utilities which

reduced the risk of overspending.

Resilience factors: His relationship with his sister seemed to be a key factor in John’s

resilience. He mentioned he had recently come back from a visit to her, and that he could call on

her if he needed financial assistance. His long work history and good connections in the local Job

Centre also gave him a degree of confidence in maintaining employment.

Barriers: Lack of awareness of advice agencies in the borough was a barrier to John getting

better financial advice.

According to the diagram in figure 2, John was classified as being resourceful as whilst he

lacked awareness of advice agencies in the borough, he knew where to access employment

opportunities and had good connections in the Jobcentre, which he utilised when he needed

to.

4.5 Jane

Jane is a 29 year old lone parent who lives in a block of flats in Gypsy Hill with her two

children; her eleven week old son who was 10 weeks premature and her five year old

daughter. She is described as “Black Caribbean” and works full time as a Wards

Administrator in a hospital – she is currently on maternity leave.

Jane classed herself as financially stressed, “Working and having children is not easy - I

don’t know whether people are better of working or on benefits” (Jane). In terms of

financial support she receives CTC, HB and CB; she did get WTC but that stopped when her

wages went up after a secondment. Her daughter was in private childcare from the age of

one and a half years and she found the nursery very expensive; £1,200 per month for full

time. Tax credits paid 80% of this, but when her wages increased it was reduced to 70%

which meant she had to pay an extra £200 per month.

21

Paying bills were Jane’s biggest worry. She

paid her rent first, then juggled money to pay

bills each month and was always in overdraft.

“I prioritise bills by seeing who calls or

writes to me saying it has not been paid

then I negotiate payment with them”(Jane)

A direct debit for all bills went out on 24th of the

month and money for childcare went into a

savings account. Jane paid the childcare

provider directly. Jane is currently paying off

rent arrears and other debts; she borrowed

from an online lender but has paid that off now.

She said it was easy to apply for the loan but

wouldn’t borrow like that again as “it ismore stressful and expensive if you can’t pay

back in full - it’s just another bill” (Jane). Jane was also stressed about having to buy

clothes and school shoes for her daughter as she is growing fast. She stated that if

childcare is capped she will not be able to afford an extra £500 a month. As she works full

time, her daughter has to go breakfast club and after school club, which is an additional cost.

Jane is also considering the cost of a nursery placement for her son when she returns to

work next year.

Jane has a large extended family but does not go to them for support or assistance. She

was initially supported by her son’s father to buy large items such as a cot and pushchair.

Despite financial pressures she likes to provide nice things for her children and recently

hosted a birthday party for her daughter. She is worried how she will cope when she returns

to work i.e. affordable childcare and working hours as her work is not flexible. She does an

online Tesco shop each month for £300 for food, not including meat and fish. She prefers

branded goods but buys supermarket brands for cleaning products as they “do the job”.

Whilst it is easier for her to do one big shop, she realises convenience can cost more than

shopping around so she does look out for online deals, such asmultiple boxes of nappies

from Amazon. She also buys pasta, rice and long life milk in bulk as it’s cheaper.

Needs: Affordable childcare is an important need for Jane as this will affect her decision to go

back to work after maternity leave. If childcare is unaffordable she will have to reduce her hours

or give up work entirely, making her fully dependant on benefits.

22

Strategies: Jane manages her finances by prioritising bills to pay what seems more urgent

based on which creditors pursue her for payment. She also shops online and bulk buys to take

advantage of special offers.

Resilience factors: Jane enjoys socialising with friends and family and often gives advice to

people she knows about claiming benefits and accessing state resources. This

understanding of the system means she is able to successfully navigate her way through it.

Barriers: Unaffordable childcare is a major barrier as many other financial decisions are based

on this factor. If she is unable to find it, she will have to reduce her hours or give up work entirely

making her totally dependant on benefits.

According to the diagram in figure 2 Jane was classified as resourceful as whilst many of her

social connections were with people who also had financial difficulties, she was very aware of

what she was entitled to in regards to state support and was active in thinking about what she

needed to do to become more financially resilient i.e. work more hours. She was however

restricted due to unaffordable childcare options.

4.6 Romeo

44 year old Romeo is a married father of two boys (aged 11 and 16) and has lived in his flat

in Clapham for 13 years; he likes the area but not the block where his flat is. He previously

lived with his parents who he described as wealthy; his father used to own four coffee shops

in London but only has one left where he still goes to work there everyday. Romeo had not

spoken to his father for 13 years after a falling out. He believed he would still get on with his

mother but she could not speak to him as his father would not allow it.

Romeo had been unemployed for a year after being fired from his last job as a concierge at

a private block of flats near the House of Commons. Up until then Romeo had worked all of

his life. He spent many years working on cruise ships as a silver service waiter earning good

money. He said “I have always been comfortable and natural around really wealthy

people - they appreciate that I am not a fake”.

Romeo’s wife worked in the shop at Westminster Abbey and earned about £900 per month.

They also claimed child tax credits, working tax credits, child benefit, and small amounts of

council tax and housing benefit. They had recently worked out their incomings and

outgoings. Their total income was £1550 per month and their total outgoings were £1500 per

month.

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Last year the family discovered they had been wrongly paying the full rent, as only his wife

was working and Housing Benefit should have covered the shortfall. After complaining,

Romeo’s benefits were suspended for three months while his case was investigated; during

this time the rent arrears increased to £1200 and he was summoned to court. Romeo found

this very stressful as he had never been in arrears before and was worried he would get

evicted from his flat.

After seeking advice from his

neighbour, who teaches law at

Kingston University, he

returned to the council office

where he was told by staff to

ignore the letter threatening him

with court and his revised rent

was agreed; he is still paying

off the arrears. Romeo thought

that a verbal apology was

insufficient based on the level of stress it caused him and his wife. They had managed to

reduce their rent arrears to less than a months’ rent and hoped to have it cleared after selling

some household goods to raise the money. The whole experience left Romeo with a level of

disdain for the council as he believed the mistake has really cost him financially. He recently

received a late evening call from a housing officer regarding a missed rent payment, which

he described as:

“intimidating - there is no customer service at Lambeth, I am disgusted about the

way I am treated…..I pay them rent, I am a customer and they treat me like this all the

time. If I had money I would love to move and have nothing to do with Lambeth

anymore (Romeo)

Romeo said they were struggling every month and because he did not have a relationship

with his parents, he was unable to borrow money from them and had no safety net.

“We have about £8000 worth of debt but this is not a problem as they are all on

repayment plans of £5 per month”(Romeo)

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The family had previously used a debt management company, Pilkington, who were effective

but charged £35 per month so theystopped using them. Romeo has,however been able to

maintain the same arrangement with his creditors on his own.

.

“I would not go anywhere for financial advice; if I needed advice I would ask my

teacher friend downstairs as she is very knowledgeable about the law and people’s

rights.” (Romeo)

Romeo had never used a payday loan shop and said, “I would not go anywhere near

them as they charge too much interest”. The family sold a lot of their possessions at

Cash Converters when they were really struggling for money. Due to his previous

workpeople, Romeo seemed to be well connected. His youngest son was in the last year of

primary school in Sloane Square, “it is a good school and he was able to get in because

of the links I have with the church” (Romeo). When his eldest son was expelled from

school, Baroness EM (a friend of his through his previous job) called the headmaster of the

school and the next day his son was reinstated and he received an apology from the

headmaster.

Romeo said that if he needed to borrow money he borrowed it from his neighbour downstairs

(the teacher). He owed her about £250 and said he would repay her when his wife got paid.

He said they helped her a lot as well, as she had three daughters and sometimes he looked

after them athis flat after school. Romeo said he would be taking one of her daughters to her

ballet class that same day as his neighbour had to work late, “this is what being a good

neighbour is all about - in Italy it is always this way but in the UK people are mostly

unhelpful and they don’t really talk to their neighbours at all”(Romeo).

According to Romeo his wife’s employer really liked her and sometimes when they had no

money she got a ‘sub’ from them; they also occasionally gave her gifts authorised by the

Dean. His wife was given an order of service for William and Kate’s wedding in 2011, which

they sold through an auction house and received just over £1800, which helped pay off

some debts. They also had an order of service for the Queens’ diamond jubilee in 2007,

which had been valued at £2000. Once sold, they plan to use the money to pay of the rest of

the rent arrears,” ideally you would not sell these things but at the end of the day what

good are they if your family is going without?” (Romeo).

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Romeo wanted to get back into employment and admitted he had been too fussy about

where he wanted to work. He recently submitted an application to the House of Commons

for a job as a door man after receiving notification of the vacancy from Baroness EM.

Needs: Losing his job, and the prestige and contacts associated with it, had a negative

impact on Romeo’s mental health and wellbeing, , which may have contributed to his delay

in finding work. Romeo seemed to need encouragement and support to re-enter the job

market and find a position that would give him the status he was used to having.

Strategies: The family sold valuable items to raise money to boost their income, buy what

they needed and clear debts. They also initially used a debt management agency, before

leaving them and maintaining agreements with their creditors themselves.

Resilience factors: The family had a significant amount of social capital which helped

unlock doors (in the case of the school exclusion) and gave them access to extra money

when needed. This also gave them the ability to borrow money from their neighbour.

Barriers: Losing his previous job and the prestige that went with it was a barrier to Romeo

actively seeking work for about a year. Negative perceptions of the council also acted as a

barrier for Romeo to use any of the council run/funded advice services.

According to the diagram in figure 2 Romeo was classified as resourceful as though he had

been reluctant to look for work for several months, he knew where to go for advice and

support and eventually was active in seeking employment. He also had well established

connections with influential people and he was able to tap into that leverage when

necessary.

4.7 Sarah

51 year old Sarah has been a Lambeth resident since she was 17 and currently lives in a

council property in Gypsy Hill. Described as “Black British”, she grew up in Kent and moved

to London “for love”. She has four children, 3 girls and 1 boy. Sarah is no longer in a

relationship with the children’s father, although he helps her out financially and with handy

work from time to time. Her oldest daughter (29) is currently on a Christian mission to

Burundi, her second oldest daughter (21) is at university in Birmingham, and her youngest

daughter (13) and son (10) are in full time education. Her son has sickle cell AB.

26

Sarah is self-employed and runs a number of social enterprises including one helping young

people set up their own business. Her aim is to “help young people turn their talents in to

livelihoods” (Sarah). She had previously worked with Sure Start Centres and was

therefore well connected to public sector agencies in the local area. However despite her

many connections and networks, her business ideas did not seem to be working in the way

that she would like;

“My life experience can be seen as a “patchwork quilt… my experiences don’t seem

to make any sense but as a whole it works” (Sarah).

“The major problem with this business is I do not own the machine that engraves the

bottles and have been let down in the past by organisations that do” (Sarah talking

about her drinks making enterprise).

Sarah was in receipt of Housing benefit (£119.26 per week) and council tax benefit (£17.72

per month) It was unclear how much she earned per month from her businesses, however

the fact that she received such a high level of housing benefit indicates that despite being

self employed she had a relatively low income.

In her early career Sarah worked for BHS in administration, although the focus of her life had

been her voluntary work, her life had mostly focused on voluntary work, particularly through

religious organisations. She used to help out a lot in a homeless kitchen but reduced her

efforts to focus on the Christian Union, prayer groups and school volunteering as she had

previously struggled with work/life balance. She also spoke of her partial qualifications as a

design technology teacher and how she hoped that her most recent business venture,

engraving glass drinks bottles, could help young people, specifically boys, to get some work

experience. Sarah had starting her own drinks company, specialising in a popular Caribbean

drink, but was having difficulty progressing as she did not own the engraving equipment

required.

As a school governor and volunteer classroom assistant at her son’s school, Sarah was very

enthusiastic about the school and its improvements since her first child, now 29, was a pupil.

Sarah talked about how she now felt more confident getting involved in the school,

something she wouldn’t have done when her first two children attended the school.

Sarah spoke of having problems with Lambeth in regards to her heating which started

approximately five years ago. The situation had caused Sarah a lot of distress in the past.

Due to the problems with the heating she had been left with a lot of debt which she is still

27

paying off. It also meant that she had to switch to a meter system; Sarah recognises that

this wasn’t the best situation for her as it was more expensive but it meant that she would

avoid having large bills. She also thought that her heating system was inefficient and she

ended up paying a lot more that she should. She spoke of how other people in her building

seemed to get their heating replaced, but she hadn’t due to her previous problems and went

into some detail about how in the past Lambeth has not provided her a good service in terms

of her accommodation.

Sarah relied a lot on friends and her connections through her church for ‘big money’ items.

Her friend had recently given her a brand new,much needed, bed. The cost of clothing and

food are also a challenge for Sarah and she spoke of making entire meals out of “store

cupboard items”, emphasising that she had not used any fresh ingredients. Whilst she liked

to use fresh foods, she acknowledged that she would have to cut down on such items as her

income may be reduced in the future due to benefit cuts.Sarah said that managing her

finances sometimes felt like “robbing Peter to pay Paul”. Although Sarah had developed a

habit of saving £2 a week, she did not have much money for an emergency situation. In an

emergency she would contact her children’s father; she wouldn’t have done so in the past

but has since learnt that not only is it good for her children to see their parents communicate

but it is also better for her financially. Sarah thought she was very capable of using a little

money to create a lot and said she had recently written down her expenditure to get an idea

of where her money had been spent. Sarah wasn’t sure about how the council could help

her as an individual make up the shortfall in money welfare reform changes would cause

her.

She credited her financial awareness to a Christian organisation; in the past she had used

Provident loans and had got into debt cycles with store/credit cards but was now aware of

the affects of these. She spoke of how she used to take part in a Partner system and how

this money had been earmarked for specific items, but then had to be given up for the bailiffs

in order to pay down her debt. Despite “a lot of temptation out there”(Sarah) she felt able

to differentiate between want and need and was making better choices. She thought her two

eldest children had learnt from her experiences of mishandling her finances.

Needs: Whilst Sarah had skills and experience in helping young people open their own business,

ironically her main need appeared to be assistance in progressing the small businesses she had

started, as she seemed to have become stuck and was still benefit dependant despite declaring

herself self-employed.

28

Strategies: Sarah’s financial management strategy seemed to be based on going without the

non-essentials. She was able to cut back on things such as fresh food, and made the most of

what she had available. She also appeared to give a lot of her time to others, which came back

to her in the form of favours and gifts, such as the bed that was given to her.

Resilience factors: Being a single mother of four children Sarah seemed resilient in that she

was able to manage her household, raise her children and start a number of entrepreneurial

activities at the same time, although there wasn’t much evidence that the ventures were

successful. She volunteered a significant amount of her time to help others, probably less

fortunate than her self, which may have added to her level of resilience.

Barriers: A high dependence on others to make her ideas succeed was a barrier to Sarah’s

businesses progressing.

According to the diagram in figure 2 Sarah was classified as resourceful as she knew a lot about

local resources and how to tap into them and used this knowledge to help young people set up

businesses. She was also very active in volunteering in her child’s school and local church,

which connected her to information and people.

4.8 Basil

Basil is a 33 year old council tenant and lives in a 4 bedroom flat on the Tulse Hill Estate.

He is Angolan, described as “Black African”, and has lived in the London for the past 10

years. He has 5 children aged 14, 12, 11, 11 and 7 from previous relationships. His marriage

broke up 6 years ago and his two eldest daughters remained with him whilst his wife moved

back to Portugal. The break-up of his marriage affected him “quite badly”. He has limited

contact with his other 3 children and pays child support for 1 of them (he maintains the

others as and when he can).

Basil will potentially be affected by the “under occupancy tax”. He said “a woman from the

council came to visit me and said I will have to pay an extra 10-15% rent per week”

(Basil), which he equated to approximately £15 extra per week. He said he would be able to

pay it as he was paying an extra £70 per week towards rent arrears after being taken to

court for owing £3000 rent; he chose to pay £70 to clear them quicker, he could have only

paid £10 or £15 weekly. Basil works 5 hours a day as a cleaning supervisor in 2 primary

schools (Brixton and Streatham). He used a bus pass as the tube fare was too expensive.

He often worked overtime to boost his pay and would like to work full time but couldn’t get

29

the hours. He worked in cleaning as it was easy to find, and previously worked in a

warehouse and a carwash.

He has 7 siblings (5

brothers and 3 sisters) and

all but 1 is in the UK. He

first lived with his sibling in

Clapham until he received

his flat from the council.

His sisters help him raise

his two eldest daughters

and supported him

financially when he

needed it. He didn’t like

borrowing from banks and

did not own a credit card –

only a debit card. His little brother, who worked in construction, also lived with him and

helped out financially. He received £184.00 working tax credit (WTC) and child tax credit

(CTC) weekly. His salary was £354.00 fortnightly and Child Benefit (CB) £134.00 monthly.

Basil described his financial situation as “not bad, but not good either”, he said he was

alright and could manage. He said if he had the money he would buy a car (he had a full

driving licence). He shopped in Morrison’s “as it’s quite cheap”, Tesco’s occasionally and

Brixton market for meat and fish. He said he didn’t spend a lot on fuel – about £20 per week

on gas and electric (the flat was very cold, both he and the researcher sat with their coats on

the entire time). His biggest weekly expense was food “they eat like pigs” (Basil referring

to his daughters).

Basil said he didn’t know where to go for financial advice although he was aware of a

previous scheme run by Jobcentre+. He thought the council was ok and gave a good

service, “repairs always come on time……… the council does a lot for people and

people need to help themselves”.Basil spent a lot of money decorating his flat over the

years; chrome light switches, spotlights, laminate flooring, floor to ceiling tiled bathroom and

kitchen were some of the improvements he had made. “How can people call the council

for a broken light switch?” (Basil).

30

Basil thought his financial stability was his

responsibility and no one else’s, though his

siblings and father helped him a lot. He

thought training would benefit him most as

“when you get more skills, you can work

anywhere” (Basil). He also thought there

should be more jobs available in the borough

and spoke of his difficulty obtaining full time

employment, “I was signing at the job

centre for 9 months…. they think you don’t

look for job”(Basil).Portuguese is his first

language, but he says he doesn’t like the

Portuguese speaking community in Lambeth

and doesn’t really shop in their shops. He has

a lot of Angolan friends locally. Basil recently

returned from Angola after spending3 months there as he was building a house; he

eventually would like to return to Angola for good.

Needs: Basil’s main need appeared to be access to full time employment as he was willing to

work more hours, but was restricted in doing so. He also wanted to retrain so that he could take

up better paid employment.

Strategies: Due to past experiences with debt, Basil had become very debt adverse and paid

more than 4 times the required amount to clear his rent arrears. The fact the flat was quite cold

could indicate that he cut back on heating to reduce household costs. He was also investing in a

property abroad, which could be part of his ‘financial management plan’.

Resilience factors: Basil seemed to have a high level of resilience, which may have been

facilitated by the financial support he received from his brother who lived with him. The fact that

Basil was working towards something ‘bigger’ i.e. building a house abroad, may also have added

to his sense of agency.

Barriers: Having a low skills base was a barrier for Basil to access better paid employment.

According to the diagram in figure 2 Basil was classified a resourceful. Though Basil did not

know where to go for advice or guidance about financial matters, he did not appear to be isolated

and tended to get advice from family members, who also offered him a lot of support financially

31

and in-kind. He was also active in working towards long term financial security in that he was

building a house abroad.

5. Research findings and Analysis

5.1 Qualifications, skills and employment

The participants displayed a number of needs including the need for better pay and/or more

hours of work, improved skills to broaden their job prospects, financial advice to help them

access affordable credit and prioritise their debts, and affordable childcare to enable them to

take up more hours at work or undertake part-time study to improve their skills.

Whilst the researchers did not ask a direct question relating to qualifications and skills,

based on the jobs people were doing or had previously done, it appeared that most

participants did not have a formal qualification above college level. The participants and their

partners mainly worked in low skilled jobs in the areas of cleaning, retail, administration,

concierge and postal delivery. Whilst half of the participants appeared to have chosen their

occupation as they had natural talent and/or a level of passion for that area, others seem to

fulfil roles that offered them the hours they needed to pay the bills and take care of their

children. It was also noted that none of the participants were undertaking any type of

education or training to improve their employment, which could have been for a variety of

reasons including lack of affordable and appropriate childcare.

Participants spoke of wanting to take up work in another area but that they lacked the skills

and qualifications to do so. It is possible that public agencies could engage and support

people on low incomes to improve their skills more effectively, however, there are also

concerns with the supply of jobs in the local area. Improving skills, qualifications, childcare

and experience will not necessarily lead to higher levels of income if the jobs are not

available.

5.2 Affordable Childcare

Household budgets are under increasing pressure, and childcare costs are yet another bill

which families need to take into consideration alongside housing, utilities and the weekly

shop. Figures from the GLA show that inflation on childcare in London for 2011-2012 was

6.8%, meaning that childcare costs are rising far more rapidly than average wages. With

average childcare costs in London totalling over £6000 per annum (Mutual Family

Investments), helping to establish sustainable and affordable childcare initiatives is a key

way in which the council and its partners can help working parents on their way to financial

32

resilience. As supported by McQuaid et al (2010) who studied parents experiencing

recurrent poverty, the availability, cost and quality of childcare was a consistent issue for

parents of children of all ages. Advance payments and deposits required by childcare

providers were a significant inhibiter for low-income parents. The lack of flexible childcare

(during the evenings, at weekends, at short notice)and its availability during the school

holidays were particular problems. These findings mirrored ours, with several of the parents

struggling to find affordable childcare that would enable them to work full time, thereby

increasing their household income.

In March 2013 the Government announced a new tax-free childcare scheme which will

replace the existing childcare vouchers programme. It's due to start in late 2015, after the

next general election. Under the proposed initiative, eligible families will get 20% of their

yearly childcare costs up to £6,000 per child, paid for by the Government. This could mean

payments of up to £1,200 per child. Despite this proposal and other current childcare support

initiatives such as child tax credits and childcare vouchers, there is still much to be done as

for some families these initiatives do not go far enough.

One of the ways to meet this growing need is the creation of childcare networks and co-

operatives. The creation of a network of local parents who are willing to share pick up to and

from nursery or childminder care will not only help foster better neighbourhood relations but

may also help bring communities together for a common cause. A childcare co-operative

could consist of fully trained parents who as part of their membership provide a certain

amount of hour’s childcare per week/month in return of a place for their child in the childcare

setting. The reciprocal contribution of parents could offset or significantly reduce the costs of

the childcare. The setting could be based in a central location in the neighbourhood making

it desirable for parents from all income brackets, helping to breakdown the social divides

which often appear in cities across the country. Whilst there is much work to be done to

explore this option further, including working through all the legal and safety requirements,

this could be a potential breakthrough in cracking what can sometimes feel like an

insurmountable challenge.

5.3 Money management and financial advice A number of the participants had become quite good at managing their finances after going

through bad experiences with debt in the past and ‘learning from their mistakes’. A couple of

the participants had, or were using, debt management agencies to help them clear their

debts. Others used their own budgeting skills to manage their income and clear debts, whilst

a few of the participants ‘buried their heads in the sand’ and ignored quite significant levels

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of debt. There were varying levels of awareness of council supported money advice services

in the borough; however after being made aware of them, some participants said they

wouldn’t be inclined to use them anyway.

“……they’re are only going to tell me what I would do if I had the money to do it

anyway” (Richard)

“I would not go anywhere for financial advice; if I needed advice I would ask my

teacher friend downstairs as she is very knowledgeable about the law and people’s

rights.” (Romeo)

Whilst most participants did not use council supported money advice services, some

participants did express an interest in knowing where they were and how they could help.

The fact that several of the participants had used, or were using, high interest loan

companies such as Provident and Wonga and were experiencing high levels of problematic

debt could demonstrate the need for better advertised ethical lending services available to

residents. It has been suggested that there are two ways to tackle problematic debt and,

specifically, disincentivise residents from using high cost payday loans. On the demand side,

the council need to ensure that residents are informed of all their options before choosing

where to get credit, and have access to education and support around money management

and debt when they need it. On the supply side, Lambeth must maintain consumer choice,

and develop, where necessary, other options for residents around accessing credit when

they need it so that they don’t feel like their only option is to use payday loan shops.

It was suggested by Pauline that money management be taught in schools to help children

avoid the basic financial mistakes many people make and improve their financial acumen.

However research conducted by IPSOS MORI casts doubt on the idea that financial

education provided at school can be as helpful as people hope it might be. These findings

are confirmed by other research into financial education which suggests general financial

education programmes, especially those delivered to young people in school, are not

particularly effective as in the eyes of the young people the subject is not relevant or current,

in the way it might be to an adult experiencing financial difficulties (Perry, 2013).

5.4 Coping strategies

All of the participants had a number of what could be called ‘coping strategies’; routine ways

of managing their lives and households on a relatively low income. Some of these included

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prioritising debts deemed to be more urgent, based on which creditor contacted them for

payment and delaying payment of other ‘less urgent’ debts’. Interestingly whilst one

participant viewed council tax as non urgent and had amounted £8,000 worth of arrears,

another participant saw council tax as her most important bill, as she feared going to prison if

it was not paid.

Bulk buying in order to take advantage of multi buy offers and shopping online for ‘deals’

was another strategy deployed by participants. Some of the participants had a preference for

branded food products despite them often being more expensive than non branded ones.

Jane had her cupboards completely filled with branded cereals and branded baked beans,

as these were part of her child’s staple diet. Liz also confessed to favouring branded goods

over non branded ones; both Jane and Liz were lone parents. Recent research looking at

low-income household coping strategies via the consumption of brands found that

individuals initiate strategies to avoid the social effects of stigmatization and alleviate threats

to social identity.

“In particular, families engage in conspicuous consumption, with emphasis on

ensuring children have access to the ‘right’ brands. Low-income consumers, in

particular single mothers, may be understood as coping within the challenging

context of consumer culture to improve the standard of living for their families.

However, drawing on underclass discourse surrounding ‘chav’ culture and single

mothers, it is demonstrated that the coping strategies employed to achieve approval

in fact fuel further stigmatization and instead of creating inclusion have the opposite

outcome of exclusion and marginalization”

(Hamilton, 2011)

Whilst this is linked to wider issues of how companies market their goods and target certain

groups, there is something here about how individuals are educated in making better more

cost effective buying decisions. With the deepening of the recession many people have

switched from branded to no-branded goods. According to research carried out by Mintel,

“on balance, consumers expect to buy more standard and value own label foods

while cutting back on brands”.

Other financial coping strategies included using debt management agencies to help clear

debts and manage their income, using pre payment meters for fuel and exercising really

strict budgeting skills. Participants also sold valuable items to raise money to clear debts as

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in the case of Romeo, whilst Richard and Sarah took part in Partner systems to raise money

for large expensive items such as a pushchair.

5.5 Resilience factors

The research revealed that low income workers in Lambeth have a long list of strengths and

a high level of resilience in overcoming obstacles and barriers such as the effects of poor

housing and outstanding repairs, lack of affordable childcare and lack of formal or

professional qualifications. Far from the media stereotypes such as ‘benefits scroungers’,

participants didn’t particularly like claiming benefits and were keen to work to support their

family, and had a high sense of personal responsibility, which correlates with the Surrey

research findings.

“…..my financial welfare is my responsibility; I need the support to support myself”

(Richard)

Despite participants’ shortfall in income, most were still able to provide the basics for their

family, such as food, warmth and clean clothes, most of the time. Richard spoke of washing

his daughters’ school uniforms every evening as he couldn’t afford to buy a second one.

People seemed very capable of managing and getting by with very little resources and

disposable income. The Kent research describes this as:

“families who might be best characterised as ‘just coping’ or ‘breadline’ families.

These are not the families who have experienced total breakdown; they are those

families living on often distressingly low incomes, but nevertheless coping with

limited intervention from government agencies.” (Kent, 2008:12)

Whilst not all participants prioritised their finances in what might be seen as the most

appropriate ways, most spent money and paid bills in areas they deemed essential. Some

had quite high financial acumen, as in the case of Pauline who was rigidly managing her

income and debts, via a debt management agency with the aim of being debt free in 5 years.

John spoke of creating weekly budgets out of his monthly salary and taking a strict approach

so that when the money for fuel ran out, they went without and wore extra clothes until it was

time to top up the meter again. Far from being frivolous with their money, most of the

participants were trying to repay their debts albeit it with relatively low and sometimes

sporadic repayments. Liz was an exception as she was aware of her £8000 council tax debt

butclearing the debt seemed unachievable, and she had accepted that she was unable to

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pay it. She did however spend significant amounts of money ‘treating’ herself to clothes,

handbags and a professional photo shoot.

5.6 Daring to dream

The sense of agency amongst participants varied. Sense of agency refers to “the degree to

which people attribute their circumstances and the outcomes they experience to being within

their own control”(Menkes, 2011).There were those who appeared to have high ambitions as

in the case of Sarah, who was very entrepreneurial, and Basil who was building a house

back in his native country. While they were currently living on low incomes, they spoke of

plans for their future and seemed to have a sense of control over where they were heading.

They were, however, in the minority; others such as Richard, Liz and Pauline knew their

financial situation was not particularly good and hoped for better, but did not appear to feel

able to do anything to change the situation. Richard came across as very dependant on help

from friends and family. Although he recognised that he was ultimately responsible for his

financial situation hefelt “others” played a big part in helping him get where he wanted to be.

That said, Richard didn’t seem to believe that he would, or could, achieve his financial

dreams and spoke of start up finance being a barrier, “I would love to own my own

bakery, but that’s just a dream” (Richard).

Pauline spoke of wanting more for her husband as he was a graduate yet worked in a low

skilled job, however the family didn’t appear to have any plans for him to work his way into

his preferred career, which may have been due to the large and immediate responsibility of

providing for his wife and 5 children, 4 of whom were under 8 years old.

Despite being a lone parent, Jane came across as quite career focussed and spoke of taking

up a secondment position before having her son, which gave her a better salary. She was,

however, uncertain about what would happen after her maternity leave as her job wasn’t

flexible and she was unable to afford childcare costs if her sons were to go to nursery on a

full time basis. It was as though Jane was at the mercy of her employers, and she didn’t

have many options other than working full time and trying to find cheaper childcare, or giving

up her job to claim full benefits, which would allow her to care for her children herself. Jane

didn’t appear to have much control over the situation. For these participants there was a

sense of resignation, a ‘that’s life’ sort of mentality, set against a backdrop of hope and

immaterialised dreams.

This poses a substantial challenge for both low income workers and the agencies and

authorities best placed to help them. How does a low income worker move out of their

situation into an improved financial state if they are resigned to their circumstances? For

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these people, the desire for change is not enough to bring that change into existence as

there is a fundamental gap in their wherewithal which prevents positive change happening.

5.7 In search of social capital

A significant number of participants spoke of “all their family and friends being poor”. They

said they couldn’t go to them for financial help as they too needed help themselves. There

were cases where siblings and estranged partners did provide financial support, but this was

only very occasionally and for ‘big money’ items such as white goods, or a pushchair as in

the case of Jane. This help was often seen as a loan as participants usually had to pay the

money back. With no useful social capital people often moved in ‘poverty circles’, where all

their regular associates were in similar circumstances to them. Going to work provided a

social network for some of the participants, and prayer groups and other church based

groups provided an opportunity to socialise and obtain support both pastoral and physical for

others; Sarah spoke of “being blessed with a bed” from her friend from church.

Whilst people’s networks of family and friends were not a regular source of financial help,

they were pivotal in helping families manage childcare. Several of the participants’ family

members regularly cared for their children whilst they were at work (on a weekly basis).

When taking childcare costs into account, this help was vital for families as without it many of

them would not have been able to go to work making them entirely benefit dependant.

Reduced public finances has necessitated the debate on what the state should do for

communities and what communities must do for themselves which emphasises the need to

help build useful social capital within communities to enable them to help themselves. There

is some debate as to who are the best people/organisations to do this work and whether or

not it is the role of the state. A clear example of the benefits of social capital can be seen in

the cases of Romeo and Liz; Romeo was able to call on his networks to have his son’s

permanent school exclusion overturned immediately, whereas despite numerous efforts Liz

was unsuccessful in getting her son moved from a Pupil Referral Unit to a mainstream

school. Whilst Romeo’s connections may be somewhat ‘out of the ordinary’, as most people

will not personally know a Baroness, there may be individuals, neighbours even, who are

able and willing to assist others using their skills, be it letter writing, advocacy or teaching.

The challenge then is for the council to make more of the unseen, untapped capacity in

communities enabling them to use their personal / social assets that might be currently un-

utilised.

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5.8 Making work pay

The research found that the loss of the certain benefits and the increased financial

responsibility was a barrier for people to take up full time employment. Participants spoke of

being “worse off” working full time than they would be if they continued to work part time.

This is mainly due to participants working in relatively low paid industries (i.e. administration,

retail and cleaning). This indicates the need to help residents improve their skills and

qualifications in order to obtain better paid employment, making them more financially

independent and less dependant on benefits. It is clear that people wanted to work and most

of the participants enjoyed their job. A key role for the council will be in helping to stimulate

the local economy by creating more sustainable jobs as outlinedin the Community Plan

2013-2016.

The impetus to take up well paid employment mightbe exacerbated by the impending

introduction of Universal Credit (UC) where lone parents with one, two or three children will

be worse off across the whole income range than under the 2010 benefit system (Chartered

Institute of Housing (CIH), 2012). Most two child families with a single earner (either a lone

parent or in a couple) who earn less than the living wage will be worse off than under the

2010 system and couples with three children will be worse off than under the 2010 system if

their earned income is less than £300 per week, making employment, particularly full time

employment, quite an attractive option (CIH, 2012).

5.9 Stress, mental health and wellbeing

Over a third of participants suffered with stress and/or poor mental health and wellbeing as a

result of their financial situation. This was often made worse by council errors such as

benefit overpayments, outstanding repairs in their property, threatening letters for unpaid

rent or council tax and poor service from Lambeth call centre staff (as witnessed by

researchers).

“The council should be more understanding of the pressures people face; I know they

need their money but is it better for them to evict someone and never get their money

or let the person stay and pay more slowly?” (Richard)

Some participants spoke of the fear of loosing their home and the mental stress of being

taken to court for unpaid rent. A home provides shelter, which is one of humankindsbasic

needs, so the fear of losing it and all the associated other problems it would bring is often

enough to increase stress and cause significant upset. This could also affect an individual’s

ability and motivation to take up employment. There is a need to ensure that one part of the

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council’s ‘system’ is not working against another part, i.e. how does the work of the

borough’s rent/council tax collection teams support the work of the Health and Wellbeing

Strategy? Do arrears and reminder letters need to be written using threatening language?

That’s not to say that debt management and income collection shouldn’t be taken seriously,

but rather to ensure that residents are supported and adequately signposted even when they

owe money to the council.

“This approach is intimidating; there is no customer service at Lambeth, I am

disgusted about the way I am treated” (Romeo)

In helping the long-term unemployed back into work it is important to take their mental state

into account, as whilst a person may not have been diagnosed with a mental health

condition, being out of the workplace for a long time compounded by the daily stresses of

low income life can affect people’s mental state2.

5.10 Building trust

The research uncovered a number of personal negative histories involving the participants

and the councilrelating to outstanding repairs, benefit overpayments, court action and poor

customer service. All of this had left some of the participants feeling quite despondent and

disregarding of the council. There was also a lack of trust and a level of cynicism about the

council’s plans.

“The council could try harder at getting residents to trust them more; like advertise on

posters, or give out leaflets and booklets showing real life stories where they have

helped residents in different circumstances.” (Pauline)

If bridges are not built with this ‘disappointed’ or ‘despondent’ section of the community and

they are not effectively engaged, there is little chance that they will want to be involved in the

council’s cooperative council plans for all sectors of the community to work together to meet

the aspirations set out in the Community Plan 2013-2016. Therefore greater trust and mutual

understanding between the council and residents will be essential to the successful

meaningful involvement of citizens in commissioning in all areas of the council’s business.

2 Mixed anxiety and depression is the most common mental disorder in Britain, with a quarter of people experiencing some kind of mental health problems in the course of a year (Mental Health Foundation 2013)

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i Examples include , behaviour change to improve wellbeing in older people see Shropshire Council’s

blog here , young people leaving care (Baldwin, 1998) as well as using ethnography to tackle Long

standing dissatisfaction with public services among black Caribbean community (Lambeth, 2011)

iiThe small number is because this is a new field. iii For more details see Labour’s web site http://www.labour.org.uk/labour-launches-campaign-to-save-our-

high-streets

6. Bibliography

Baldwin, D. (1998) ‘Growing up in and out of care: an ethnographic approach to young people’s transitions to adulthood’, PhD thesis, University of York Library

Harrison, E. (2012) Bouncing Back? Recession, resilience and everyday lives. Critical Social

Policy

Gaffney, D. (2010) The myth of the intergenerational workless household. 21 September.

Available at: http://www.leftfootforward.org/2010/09/the-myth-of-the-intergenerational-

workless-household

Hunt, C. (2001) Listening to women: an ethnography of childbearing women living in poverty.

PhD thesis, University of Warwick available here

Joseph Rowntree Foundation, (2012) Are 'cultures of worklessness' passed down the generations, availablehere

Lambeth (2010) The Co-operative Council - Sharing power: A new settlement between citizens and the state here

Lambeth, (2011) A black Caribbean Critique?, available here Macmillan, L. (2011) Measuring the intergenerational correlation of worklessness, Working Paper No. 11/278, Centre for Market and Public Organisation, University of Bristol McQuad, R, Fuertes V and Richard A (2010), How can parents escape from recurrent poverty, Joseph Rowntree Foundation, York Menkes J, (2011), Better under pressure, Harvard Business Review Press

Mental Health Foundation http://www.mentalhealth.org.uk/help-information/mental-health-statistics/

Mintel (2012) Brand vs. Own Label Retailing, http://www.mintel.com/press Mutual Family Investments, (2012) Childcare affordability report, Oxfam (2013) Work no longer pays for Britons caught in "perfect storm" of falling incomes and rising costs available here

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Perry C. (2013), Coming up for air: Building financial resilience in an age of austerity, Ipsos MORI - Understanding Society April 2013

Save the Children (2012) The UK’s poorest children reveal the bleak reality of life in recession-hit Britain’, available here

Surrey (2013) HC 833 Implementation of Welfare Reform by Local Authorities Written submission from Surrey County Council (IWR 51 here